Debt debacles in the euro zone and in the U.S. dragged down the Canadian dollar to its lowest value since the first week of October on Monday, according to Bloomberg.
The loonie followed the downward track of crude oil, the natural-resources rich country's top export commodity. Thus far this month, the monetary unit is down roughly 3.6 percent.
"We've certainly broken pretty violently out of range today," chief currency strategist Camilla Sutton with Scotia Capital told Reuters. "From here, it gets more psychological than anything. We're in a very volatile environment right now and I think the outlook for Europe is deteriorating fairly rapidly, and I think that it's playing havoc with risk aversion."
At 4:19 p.m. on Monday, crude oil futures dropped 0.5 percent, a 54 cent slide to $107.02 per barrel.
Republicans and Democrats on Capitol Hill were expected to announce on Monday that their Congressional committee tasked with establishing a plan to reduce the deficit failed to find common ground. The sovereign debt scourge in the euro zone continues unabated as France faces the possibility of losing its top credit rating as a consequence of high borrowing expenses and costs.
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